The Anti-Money Laundering Financial Action Task Force (FATF) presented a report on stablecoins. Its leitmotif was the potential for the massive introduction of “stable” coins and the need for issuers and cryptocurrency exchanges to follow the organization’s requirements.
Virtual Assets FATF Report G20 So Called Stablecoins
“Stablecoins are more than cryptocurrencies suitable for mass adoption. In the event that they really remain stable in cost, it is easier to use and created by large companies that intend to integrate them into mass telecommunication platforms, ”the FATF report says.
According to the supranational regulator, stablecoins can pose the same threat to fiat currencies as cryptocurrencies, due to their confidentiality capabilities, global reach and potential use for illegal purposes. To prevent this, the FATF began to develop new rules for the circulation of stable coins.
According to the revised standards, stablecoins will be considered as virtual assets or traditional financial products. Their issuers will be required to follow established AML / CFT rules. The range of these requirements will apply to other organizations depending on the structure of stablecoins, the degree of decentralization of stabilization and transfer mechanisms of coins, and also the scope of the issuer.
The organization emphasized that even in decentralized stablecoin exchanges, money transfer service providers and custodian wallets will be required to implement appropriate AML / CFT procedures.
The FATF will also oblige virtual asset service providers (VASPs) to introduce mandatory transaction monitoring to control the flow of funds.
The new FATF president Marcus Player does not see the need for a revision of the standards themselves. The organization will evaluate their implementation and the feasibility of possible changes by June 2021, taking into account any changes in technology. Particular attention will be paid to anonymous p2p transactions carried out through non-custodian wallets .
Recall that in May the Chamber of Digital Commerce, the Organization of World Digital Finance and the International Association of Digital Asset Exchanges introduced the IVMS101 data exchange standard, aimed at more efficient implementation of the FATF requirements.
